U.S. Shrimp Market Integration

Duke University Environmental Economics Working Paper No. EE-11-09

25 Pages Posted: 4 Nov 2011

See all articles by Frank Asche

Frank Asche

Stavanger University College

Lori Snyder Bennear

Duke University - Nicholas School of the Environment

Atle Oglend

Duke University - Sanford School of Public Policy

Martin D. Smith

Duke University - Nicholas School of the Environment

Date Written: November 1, 2011

Abstract

Recent supply shocks in the Gulf of Mexico - including hurricanes, the Deepwater Horizon oil spill, and the seasonal appearance of a large dead zone of low oxygen water (hypoxia) - have raised concerns about the economic viability of the U.S. shrimp fishery. The ability for U.S. shrimpers to mediate supply shocks through increased prices hinges on the degree of market integration, both among shrimp of different sizes classes and between U.S. wild caught shrimp and imported farmed shrimp. We use detailed data on shrimp prices by size class and import prices to conduct a co-integration analysis of market integration in the shrimp industry. We find significant evidence of market integration, suggesting that the law of one price holds for this industry. Hence, in the face of a supply shocks, prices do not rise and instead imports of foreign farmed fish increase.

Keywords: seafood trade, market integration, environmental shocks

JEL Classification: Q22

Suggested Citation

Asche, Frank and Bennear, Lori Snyder and Oglend, Atle and Smith, Martin D., U.S. Shrimp Market Integration (November 1, 2011). Duke University Environmental Economics Working Paper No. EE-11-09. Available at SSRN: https://ssrn.com/abstract=1954082 or http://dx.doi.org/10.2139/ssrn.1954082

Frank Asche

Stavanger University College ( email )

PO Box 2557
Ullandhaug
4004 Stavanger
Norway

Lori Snyder Bennear

Duke University - Nicholas School of the Environment ( email )

Box 90328
Durham, NC 27708-0328
United States

Atle Oglend

Duke University - Sanford School of Public Policy ( email )

201 Science Drive
Box 90312
Durham, NC 27708-0239
United States

Martin D. Smith (Contact Author)

Duke University - Nicholas School of the Environment ( email )

Box 90328
A122 LSRC
Durham, NC 27708-0328
United States
919-613-8028 (Phone)
919-684-8741 (Fax)

HOME PAGE: http://fds.duke.edu/db/Nicholas/esp/faculty/marsmith

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
68
Abstract Views
567
rank
347,361
PlumX Metrics